Financial Comparison: 8X8 (NASDAQ:EGHT) & Veritone (NASDAQ:VERI)

8X8 (NASDAQ:EGHT) and Veritone (NASDAQ:VERI) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares 8X8 and Veritone”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$752.47 million	0.45	$1.65 million	$0.05	46.00
Veritone	$92.19 million	0.53	-$111.73 million	($0.38)	-1.26

8X8 has higher revenue and earnings than Veritone. Veritone is trading at a lower price-to-earnings ratio than 8X8, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for 8X8 and Veritone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	0	2	2	0	2.50
Veritone	1	1	3	0	2.40

8X8 presently has a consensus target price of $3.12, indicating a potential upside of 35.87%. Veritone has a consensus target price of $6.12, indicating a potential upside of 1,182.99%. Given Veritone’s higher probable upside, analysts clearly believe Veritone is more favorable than 8X8.

Risk & Volatility

8X8 has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, Veritone has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Institutional and Insider Ownership

94.0% of 8X8 shares are owned by institutional investors. Comparatively, 39.2% of Veritone shares are owned by institutional investors. 2.1% of 8X8 shares are owned by company insiders. Comparatively, 7.4% of Veritone shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares 8X8 and Veritone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
8X8	0.98%	31.61%	7.06%
Veritone	-111.90%	-159.15%	-39.63%

Summary

8X8 beats Veritone on 9 of the 14 factors compared between the two stocks.

About 8X8

8×8, Inc. provides cloud-based communications and customer experience services for businesses. Its platform brings together business phone, video meetings, team messaging and contact center capabilities, helping organizations manage employee and customer interactions. The company also offers communications application programming interfaces (APIs) that businesses can use to add voice, messaging and related communications features to their own applications. Its services are designed for organizations ranging from small businesses to large enterprises.

About Veritone

Veritone, Inc. (NASDAQ: VERI) is an artificial intelligence technology company that develops software for organizing, analyzing and generating insights from large volumes of data. Its platform is designed to help organizations apply AI to audio, video, text and other data sources across business and public-sector applications. The company’s primary technology platform, aiWARE, provides access to a broad range of AI models and tools through a unified operating environment. Veritone also offers solutions for digital media management, including tools that help media organizations, sports teams and other content owners manage, search, monetize and distribute audio and video assets.